South African bottled wine sales into China have increased by 50 %, albeit off a low base, and this market is estimated to be worth $6 billion by 2014, and about 34 million Chinese could be drinking wine by 2015, reports the Weekend Argus.
A number of leading South African wine brands will be exported into China via Cape Legends, a Distell-owned company, after the signing of an export contract. The exported wine brands are Alto, Jacobsdal, Neethlingshof, Plaisir de Merle, and Stellenzicht, using Chinese distributor Guangzhou South Africa Valley. One wonders how the Chinese market will cope in pronouncing these wine brand names, with the exception of Alto.
Wines of South Africa (WOSA) spokesperson Andre Morgenthal said that China is a huge market due to the size of its population, but the population’s knowledge of South African wines is ‘limited’. France and Australia have the edge on wine awareness and sales in China. Hein Koegelenberg, who exports his Leopard’s Leap to China, echoes this, in saying that the Chinese market buys on perceived brand value, and the Pétrus, Lafayette and Mouton Rothschild brands are the best selling wines in China, he says, as the French were the first to recognise the potential size of the Chinese market. Leopard’s Leap has the dubious honour of having been faked, non-certified wine from Stellenbosch having been seen with a similar Leopard’s Leap label at a recent wine show in China.
The move to marketing wine in China is one way of countering the 20% decline in sales of wine to the UK, says Neil Pendock, reports the Cape Times. “The future of South African wines is in the East” he says. Michael Fridjhon added that the weak Rand is causing export sales at a loss, and that British supermarkets “are absolutely calling the shots to South African wine producers. In short, the guys are stuffed”. A further threat to local wine producers is that supermarkets are increasingly stocking inexpensive imported wines, helped by the weak Rand.
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Twitter: @WhaleCottage
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I think I have said this before Chris, but the UK supermarkets are just interesting in making lots of profit for themselves, do not care about quality or their producers! I buy my SA wine from more specialised wine merchants. It is definitely more expensive, but I like the service and choice. Unfortunately I am in the minority!
[…] South African bottled wine sales into China have increased by 50 %, albeit off a low base, and this market is estimated to be worth $6 billion by 2014, and about 34 million Chinese could be drinking wine by 2015, reports the Weekend Argus. A number of leading South African wine brands will be exported into China via Cape Legends, a Distell-owned company, after the signing of an export contract. The exported wine brands are Alto, Jacobsdal, Neethlingshof, Plaisir de Merle, and Stellenzicht, using Chinese distributor Guangzhou South Africa Valley. One wonders how the Chinese market will cope in pronouncing these wine brand names, with the exception of Alto. (Whale Cottage) […]